5 growth stocks with fully franked yields above 4%

JB-Hi Fi Limited (ASX:JBH), Retail Food Group (ASX:RFG), Bank of Queensland Limited (ASX:BOQ), Bendigo and Adelaide Bank Limited (ASX:BEN) and Tabcorp Holdings Limited (ASX:TAH) are all worth consideration for income seekers.

Tom Richardson

Tom is a holder of the CFA Society of the UK administered Investment Management Certificate (IMC) and has more than a decade's professional experience in the investment management industry in Australia and the UK. Tom now works as a writer and editor for TMF Australia and has two easy to remember rules of investing he likes to follow. Avoid overpaying for growth stocks and avoid paying at all for stocks that are cheap for a reason. Tom prefers growth investing over value investing and says it's not rocket science, just avoid overpaying for the best returns.

Published August 11, 2014 4:45 am AEST

If you've got a little spare cash you want to invest for the future the best stocks to buy are those on reasonable valuations relative to their growth potential. Unsurprisingly, another absolute must for many investors is a steady fully franked income stream to enjoy while you wait for the capital appreciation.

When selecting companies on high yields it's crucial to ensure those payouts are sustainable and likely to grow over time. Below are five of the best businesses currently amongst the S&P ASX 200 Index (INDEXASX:XJO).

JB Hi-Fi Limited (ASX; JBH) at $19.30 has a 4% fully franked yield based on forecast dividends per share of 79.9 cents in FY 2014. JB Hi-Fi enjoys the power of brand strength and operates in the resilient consumer electronics market. The core growth drivers are new store openings and the development of its HOME format mega stores. If you're looking to add some retail exposure to your portfolio, JB Hi-Fi is definitely one of the best options available.

Retail Food Group Limited (ASX: RFG) at $4.48 has a 4.6% fully franked yield and decent growth outlook based on its operations in the consumer fast-food markets. It has interests in pizza, coffee, cake and donuts through ownership interests in brand names like Brumby's Bakery, Pizza Capers, Crust Gourmet Pizza, The Coffee Guy and Michel's Patisserie. New store openings and growing sales can support future dividend growth.

Bank of Queensland Limited (ASX: BOQ) at $11.85 offers a fully franked 5.2% yield with Morningstar's analysts' consensus estimates forecasting those payouts to grow steadily out to 2016. With a strong regional customer base and reasonable outlook for the residential property market, Bank of Queensland's recent price weakness looks like a buying opportunity.

Bendigo and Adelaide Bank Limited (ASX: BEN) at $12.18 offers a fully franked yield of 5.1% and as Australia's other regional bank it also has a focus on winning retail banking market share. The bank is a leader in customer satisfaction and is forecast to grow earnings per share steadily out to 2016.

Tabcorp Holdings Limited (ASX: TAH) at $3.59 offers a yield of 4.45% based on the 16 cents per share payout recently declared for FY 2014. Moreover, in reporting its full year results last Thursday it announced it will increase the dividend payout ratio to 90% for FY 2015. That's likely to equal higher fully franked dividends in the current year and suggests those buying today will be locking in a very high yield.

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